Daily News: January 23, 2012

Onset Financial Provides $5.3MM Funding in Three Deals

Onset Financial said it has provided $5.3 million in funding in separate deals with a West Coast convenience store chain, a nonprofit hospital and an injection mold equipment company.

Onset provided $1 million funding for a West Coast convenience store chain. This fast-growing company wanted to increase its footprint, but was having difficulty financing the expansion.

“We worked closely with our client’s management to understand the market and the intricacies of their financial condition, and we were able to structure a transaction that could include the costs associated with convenience store construction,” said Scott Miller, Onset’s president. “Our team was able to provide a structure that allows our client to continue their aggressive growth and strengthen their dominant position.”

In addition, Onset has funded $1.6 million for a nonprofit hospital in Michigan. The financing allows the hospital to acquire new medical and lab equipment, and upgraded software, increasing the level of care the hospital is able to offer its patients.

“This transaction required long term funds at a very competitive rate to accommodate the client’s not-for-profit, county funded business model.” Said Justin Nielsen, Onset’s founder and chairman. “It’s great to find ways to structure transactions that meet our client’s challenging requirements.”

Onset also has begun funding $2.7 million for an East Coast company that focuses on injection mold equipment. The equipment will allow Onset’s client to take on additional capacity and continue to grow. Due to the specialized equipment, the customer had been struggling to obtain financing. Onset was the only institution able to secure their funds.

“The complicated aspect of this funding is based on the equipment being essentially all soft costs,” said Miller. “In today’s risk-adverse credit market, that’s difficult for many equipment finance companies to accomplish. I’m happy Onset was able to complete this transaction when no one else could.”